minutes

Regular Meeting

Governing Board of Sweetwater Authority

January 23, 2008

The Governing Board of Sweetwater Authority held a regular meeting on Wednesday, January 23, 2008, at the Sweetwater Authority Administrative Office, 505 Garrett Avenue, Chula Vista, California. Vice Chair Alkire called the meeting to order at 3:30 p.m.

• ROLL CALL

Directors Present: Alkire, Beauchamp*, Doud, Morrison, Pocklington, Thomas, Welsh

Directors Absent: None

Others Present: General Manager Bostad, Operations Manager Rogers, Legal Counsel Cowett, Treasurer Farrow, and Board Secretary Schoonderwoerd. Staff members: Jack Adam, Rick Alexander, Bill Olson, George Silva, Jim Smyth, Don Thomson, and Tom Woodrum. Also present was Lin Wurbs.

• PLEDGE OF ALLEGIANCE TO THE FLAG
Director Alkire conducted the pledge of allegiance to the flag.

• OPPORTUNITY FOR PUBLIC COMMENT (Government Code Section (54954.3)
There were no members of the public present.

• CHAIR’S PRESENTATION
There was none.

ACTION CALENDAR ITEMS

1. ITEMS TO BE ADDED, WITHDRAWN, OR REORDERED IN THE AGENDA
There were none.

2. APPROVAL OF MINUTES

Director Welsh made a motion, seconded by Director Doud, that the Governing Board approve the minutes of the January 9, 2008 meeting. The motion carried.

3. APPROVAL OF DEMANDS AND WARRANTS

Director Doud made a motion, seconded by Director Pocklington, that the Governing Board approve Warrants 112856 through 112995 including all voided checks. The motion carried.

4. OPERATIONS COMMITTEE (Meeting of January 16, 2008)

A. Director Doud made a motion, seconded by Director Thomas, that the Governing Board approve the County of San Diego’s request for a new access point to the existing riding and hiking trail on the south side of Sweetwater Reservoir, subject to the following conditions: 1) Caltrans to install a new access point which allows people and horses to enter, but prohibits motor vehicle access; 2) Caltrans to install a second gate that will remain open, but can be closed and locked by Authority staff only for any reason; and 3) the terms and conditions of the existing riding and hiking trail revocable license agreement apply to this access point. The motion carried.

NOTE: Chair Beauchamp entered the meeting at 3:39 p.m.

B. Director Doud made a motion, seconded by Director Welsh, that the Governing Board approve funding in the amount of $160,000 from the Capital Contingency Fund to cover the $47,000 deficit and the cost of the 15 additional valve replacements, as part of the 2007-08 Valve Replacement Program. The motion carried.

C. Director Doud made a motion, seconded by Director Thomas, that the Governing Board approve and adopt by Resolution 08-03 the Addendum to the Final Environmental Impact Report for the Robert A. Perdue Water Treatment Master Plan as presented by staff, based on the modifications to the proposed sewer and chemical system.

Upon said motion, the following resolution:

RESOLUTION 08-03

RESOLUTION OF THE GOVERNING BOARD OF SWEETWATER AUTHORITY
APPROVING THE MODIFICATIONS TO THE PROPOSED SANITARY SEWER
AND CHEMICAL STORAGE AND HANDLING FACILITIES PURSUANT TO
AN ADDENDUM TO THE FINAL EIR FOR THE ROBERT A. PERDUE
WATER TREATMENT PLANT MASTER PLAN FOR FUTURE FACILITIES

was passed and adopted by the following vote to wit:

Ayes: Directors Alkire, Beauchamp, Doud, Morrison, Pocklington, Thomas, and Welsh
Noes: None
Absent: None
Abstain: None

D. Director Doud made a motion, seconded by Director Welsh, that the Governing Board authorize Cass Construction, Inc., to construct a portion of the proposed sanitary sewer project, subject to habitat restrictions, on a time and material basis. The motion carried.

5. FINANCE AND PERSONNEL COMMITTEE (Meeting of January 21, 2008)

A. Director Welsh made a motion, seconded by Director Pocklington, that the Governing Board authorize a transfer of $15,000 from the Expense Contingency Fund to the Conservation Voucher Program in order to fund vouchers for the current waiting list and future requests. General Manager Bostad clarified that Sweetwater Authority has experienced very successful participation in this program, and that due to a higher demand than expected, the original budgeted amount has been depleted. On average, the Authority is spending around the mid-range for the program in comparison to other agencies and these new funds will take the Authority into the top tier. Director Thomas expressed her desire to see CWA and MWD fund these programs for anyone who applies, and expressed concern over the amount of staff time expended by the local agencies. Director Pocklington clarified that consumers have one central number to call at CWA to participate in the program and that MWD has approved additional funding for such programs. Mr. Bostad added that this program is continuously evolving, encouraged by the 20-Gallon Challenge, and that measures are being taken at the local agency level to allow better utilization of the program. It is Sweetwater Authority’s goal in the future to better project participation and eliminate waiting lists. Mr. Woodrum noted that MWD’s Board will consider funding a region-wide rebate program in coming months which would replace current voucher programs. Rather than applying vouchers to the purchase of water-saving toilets and washers, customers would be able to make the purchase and apply for a rebate with proof of purchase. The motion carried.

B. Review of leak adjustment report for the period October through December 2007. This was an information item and no action was required by the Governing Board.

C. Review of new bill format. Director Thomas noted that some of the format on the sample Reminder Notice provided was confusing. The Board discussed various ways in which wording could be changed to eliminate any confusion in reading the bill. Director of Finance Farrow noted that this was an information item at this point, and that staff is in the process of coordinating the new bill format with a new printing service. She added that staff would work to incorporate the Board’s suggestions and bring the new bill format back to the Board through Committee for further review. Director Doud expressed concern that he has received many calls from customers in his mobile home park regarding high water bills. He noted that the bill they receive from the management company does not include contact information for Sweetwater Authority because they are submetered. This was an information item and no action was required by the Governing Board.

D. Discussion of Drought Rate Study and proposed Drought Ordinance. Operations Manager Rogers informed the Board that each CWA member agency’s drought-related challenges are unique and a universal ordinance cannot be applied to all in determining drought rates. When fully developed, CWA’s drought ordinance will identify and provide the “triggers” that in turn activate the Authority’s drought rates. The Finance Committee’s discussion centered on where the region is headed on a universal drought ordinance and what bearing, if any, that would have on Sweetwater Authority’s own drought rate study and conservation ordinance. This was an information item and no action was required by the Governing Board.
6. NEW BUSINESS

A. ACWA/JPIA 2008 Executive Committee elections – Call for nominations for two Committee Member positions and the Office of President (Deadline: March 21, 2008). Director Alkire, the Board’s representative to ACWA/JPIA, did not wish to have his name placed in nomination at this time. No action was taken by the Governing Board.

B. ACWA – Vacancy announcement and call for nominations for Region 10 Board (Deadline: February 15, 2008). General Manager Bostad explained that Region 10 is seeking one candidate for appointment as an officer or board member to fill the vacancy left by the resignation of Merle Aleshire. No interest was expressed by any of the Authority’s Board members to be placed in nomination for this appointment. The Region 10 Board will interview and make a selection for appointment on February 21st. The Board decided to table further discussion on this item until further support was requested from any candidates nominated by other Region 10 agencies. No action was taken by the Governing Board.

7. REPORT OF THE SOUTH BAY IRRIGATION DISTRICT REPRESENTATIVE AND THE CITY OF NATIONAL CITY REPRESENTATIVE TO THE SAN DIEGO COUNTY WATER AUTHORITY

Director Pocklington reported on items of interest to be considered at the CWA Board meeting of January 24th. The Board will discuss the status of drought management plans for member agencies and will consider the adoption of the amended 2007 San Diego Integrated Regional Water Management Plan to include “Toilet to Tap.” There will be a status update on the Carlsbad Desalination Project. A major item to be considered will be CWA’s property and liability insurance program. The Board will consider insuring with the Special Districts Risk Management Authority (SDRMA). Based on Sweetwater Authority’s experience with ACWA/JPIA and the increasing land value and infrastructure within CWA’s boundaries, Director Pocklington stated that he and Director Morrison will support staying with ACWA/JPIA; however, five member agencies, including the City of San Diego, are insured by SDRMA, so the outcome of the vote is unpredictable. Also under consideration is an emergency pre-procurement and construction contract for Pipeline 4 repairs at the San Diego River. Director Pocklington noted that MWD’s proposed FY 2008-09 budget will be discussed, but the final decision will not likely be until March, and he will keep the Board informed. He added that also on the agenda were the reappointments of Directors Gary Arant from Valley Center MWD and Daniel Lizzul from Camp Pendleton Military Reservation, both whose terms expire in 2014.

8. APPROVAL OF DIRECTORS’ ATTENDANCE AT MEETINGS AND FUTURE AGENDA
ITEMS

A. Western Coalition of Arid States (WESTCAS) 2008 Winter Conference – February 20-22, 2008, Embassy Suites Albuquerque Hotel and Spa, Albuquerque, NM. Directors wishing to attend this pre-approved conference will contact the secretary. No action is required of the Governing Board.

B. ACWA 2008 Spring Conference – May 6-9, 2008, Portola Plaza and Marriott Hotels, Monterey, CA (Preregistration). Directors wishing to attend this pre-approved conference will contact the secretary. No action is required by the Governing Board.

9. REPORTS BY DIRECTORS ON EVENTS ATTENDED

Director Pocklington reported that the presentation given by Chris Brown, California Urban Water Conservation Council, at the Council of Water Utilities meeting on January 15th was very interesting and that he was very competent in how he presented it. Chair Beauchamp was very pleased that Chuck Muse from Helix Water District asked Mr. Brown to visit the Water Conservation Garden and incorporate it into his PowerPoint presentation. Director Thomas added that one of Mr. Brown’s specialties is to review the Best Management Practices. He is also an expert in behavioral changes by way of education, and they will be updating their strategies for that kind of thing. The CUWCC will be working on pilot programs on water sense and labeling high efficiency items and working with some of the model ordinances that would have a better impact on water conservation.

Director Morrison reported that the National City Chamber of Commerce meeting on January 17th provided a presentation by Paradise Valley Hospital concerning health issues.

Chair Beauchamp reported that the presentation at the Water Agencies Association Quarterly Meeting on January 17th was given by Peter McLaggan on the Poseidon project. Director Welsh added that she was impressed with Director Pocklington’s acknowledgement of Peter McLaggan’s contributions. Director Pocklington noted that he is appreciative of Mr. McLaggan’s efforts to move desal forward and that Peter has been steadfast in his efforts for the past ten years despite facing one barrier after another.

Director Thomas reported that the guest speaker at the Bonita Business and Professional Association meeting on January 22nd was Dr. Raj Chopra from Southwestern College. Southwestern College is going to be doing more outreach within the community, and is looking for other sites besides National City and Otay Mesa, possibly Imperial Beach or Chula Vista. There is a call for more internships. Also, Nevada Smith announced that the Trade Show will be held again in March at the Bonita-Sunnyside Library. She promises more publicity than last year’s event.

10. QUARTERLY REPORT OF DIRECTORS’ EXPENSES – 2ND QUARTER FY 2007-08

This spreadsheet report was provided to the Board for information purposes and there were no comments from the Board.

11. REPORT OF TREASURER

Ms. Farrow gave the budget report as of December 31, 2007. Water Revenue came in at $891,000, or 4.4 percent, under budget. Operating Expenses came in at $1,196,000, or 7.0 percent, under budget. The overall net effect is that we are approximately $300,000 under budget at this point.

12. MANAGEMENT REPORT

A. Report of Operations Manager Rogers: Mr. Rogers introduced and welcomed Principal Engineer Jack Adam. He reported that an interview panel of five department heads selected Mr. Adam from a group of three very qualified internal candidates to become the new Director of Engineering upon Jim Smyth’s promotion to Operations Manager in May. The Board congratulated Mr. Adam.

B. Report of General Manager Bostad: Mr. Bostad asked Legal Counsel Cowett to address a memo he provided regarding the Surfrider Foundation v. California Coastal Commission lawsuit. Mr. Cowett noted that Poseidon Resources and the eight water districts which have contracted for desal water have been named as real parties in interest. The suit challenges the Coastal Commission’s actions in issuing the permit to Poseidon and asks the court to review the transcript of the proceedings and all the documents produced to determine if the Coastal Commission abused its discretion in issuing the permit because they missed something. There will be a hearing at which the judge will review written presentations by the parties on the issues that they believe are relevant to the case. This process could take six months to a year. Mr. Cowett provided the Authority’s alternatives as to how it could participate in the litigation, should it choose to do so. The desal partners will be meeting to discuss options in February, and a report and possible action on this issue will be brought back to the Board.

Mr. Bostad also noted that the briefing he provided to the Chula Vista City Council is available on archive video on the City’s website. He will be making a similar presentation to the National City Council next month.

13. DIRECTORS’ COMMENTS

Director Pocklington announced that on February 29th he will be leading a team representing MWD on a three-day tour to Hoover Dam and down the Colorado River. He distributed a flyer for the Board’s review and interest in participating. He hopes to have some state and city representatives on the tour as well. General Manager Bostad will attend to convey information about Sweetwater Authority.

Chair Beauchamp apologized for arriving late and explained that he was delayed by traffic.

14. CLOSED SESSION

At 4:55 p.m., in compliance with Government Code Section 54956.8, the Board recessed to convene in closed session to confer with the Deputy Operations Manager/Director of Engineering and General Counsel Cowett regarding Sweetwater Authority’s Clean Landfill Site (Assessor’s Parcel Number 585-100-15). All persons left the room with the exception of the Governing Board, Management Team, Legal Counsel, Deputy Operations Manager/Director of Engineering, Director of Finance, Director of Distribution, Director of Environmental/Governmental Services, Principal Engineer, and Board Secretary. There were no minutes taken, and the session was not tape-recorded.

At 5:34 p.m., Chair Beauchamp declared the meeting to be in open session. There was no reportable action taken by the Board.

15. ADJOURNMENT

With no further business before the Board, Chair Beauchamp adjourned the meeting at 5:35 p.m.